Suddenly Frugal Blog

Holiday spending is expected to be down this year, like it was last year, according to the National Retail Federation. That’s no surprise to me from my own unscientific survey of holiday shopping healthiness.

Usually by this time of the year, I have been booked for a holiday shopping media tour. In years past I’ve been the holiday spokesperson for major organizations such as Bank of America, Game Crazy and the Boxed Chocolates Manufacturer’s Association. This year, I’ve had a few offers but at bargain-basement prices. Um, that may work in the retail sector but not in my business.

But speaking of the retail sector, website PriceGrabber.com just came out with its Holiday Forecast Consumer Behavior Report. Survey data reveals that the state of the economy is shaping new trends in holiday shopping. And from the retailer’s perspective, things don’t look so great. Here are the four ways the recession will likely affect holiday shopping this year:

1. Consumers are cutting back.
Fifty-three percent of shoppers plan to spend less this holiday season than they did last year. I know that last year our big holiday shopping splurge was a Wii for the kids; I doubt we’ll be as extravagant this year!

2. Shopping starts earlier to ease the impact of holiday spending.
Twenty-two percent of Americas plan to start their holiday shopping in October. In past years, Black Friday (the day after Thanksgiving) has been the unofficial start of the holiday shopping season. This year, consumers are planning to start their holiday shopping long before Black Friday. Sounds about right to me–if I see a holiday bargain now for someone on my list, I’m likely to buy it now, too.

3.Gift lists are being trimmed down to manage budgets.
Last year I held off tipping the mailman, UPS guy and trash service dudes to keep my budget in line, and I felt guilty about that all year. So this year I’ll be adding them back onto my “to give” list. But a few of my “kid” relatives are all grown up, and it might be time to slash them from the gift list to save money. I won’t be alone in trimming my list;  57 percent are not purchasing gifts for acquaintances.

4. Consumers are using more money-saving techniques.
This year, in order to meet holiday spending budgets, more consumers are utilizing money-saving techniques for their holiday shopping. In fact, half of all consumers (50%) are planning to shop at discount or outlet stores this year, while only 43 percent did so last year. Hey, if I can find my gifts at the Marshall’s, TJ Maxx and Goodwill stores of the world, I’m good with that.

What about you? How are you planning to change your holiday shopping plans this year–if at all–to save money?